I am the Director of Renter Insights at Rent.com, a leading rental listing website dedicated to giving renters a convenient way to find the perfect place to live by building innovative tools that bring renters and property owners together. I have an MBA in Finance & Economics from UCLA, and I am dedicated to bringing you the latest research, information, advice and insight on the world of rental living.

Financial Tips To Keep Your Apartment Search On Track

Finances are a part of life (much like death and taxes) and being financially savvy becomes increasingly important as we age because it can create opportunities to extended credit lines, secure loans and guarantee better interest rates as we seek to attain our goals in life, such as renting an apartment.

A high credit score is one specific area of financial interest that is usually referred to as the end-all-be-all of being financially savvy, but how important is it really when looking to rent? A recent Rent.com survey of property managers showed that 74 percent of property managers ranked gross income to rent ratio as an important or very important factor in order for a renter to secure an apartment in one of their communities, followed by credit profile and payment history, which 72 percent of property managers ranked as important or very important. Surprisingly, nearly 60 percent of property managers told us that a high credit score is actually not important.

Renters take note. When it comes to qualifying for your next apartment it’s best to have your financial house in order with a qualifying income level and a credit profile showing a good history of on time payment, but don’t sweat it if your credit score isn’t 750. It’s important to understand your credit score and what it says about your financial profile but don’t get stuck on the number if it’s not perfect.

Another factor to keep in mind is the level of income expected in order to qualify for a dream apartment. More than 50% of property managers say that, at a minimum, a monthly gross income should be at least 3x the monthly rental rate and approximately 30% of managers would accept an applicant based on gross income at 2.5x the rental rate.

Keeping this in mind renters as you begin your apartment search can help you avoid disappointment while finding the best apartment fit for your lifestyle and income. If you have your sights set on a $3,000/month apartment but your gross income each month is $6,000 (and you don’t want roommates) you have just wasted your time.

Below are some financially savvy tips from Rent.com to keep your apartment search on track:

Stay On Target – having at least 3x the monthly rental rate in gross income is your best bet for landing an apartment. Don’t waste time applying for apartments you won’t qualify for, keep your search focused to those you can afford. If you live in an expensive city and cannot meet this threshold on your own, consider finding a roommate to co-sign with you.

Understand Your Credit History – while having a high credit score is not necessary, it’s still important to understand what

your credit report says about you and the basis for your score to uncover any underlying issues. Managing your money and paying your bills on time contributes to a good credit history and shows that you are mat ure and responsible and that’s what properties want in their renters.

Know that Rates Matter– If you are worried about your income and credit profile then keep in mind that vacancy rates matter too. In cities and neighborhoods with high demand and low vacancy there is more competition which could land your application at the bottom of the stack if your financial profile is lacking. However, in neighborhoods or apartment buildings with higher vacancy you may find property managers who are willing to be more flexible and understanding.

Communicate Financial Concerns – If you find something on your credit report that could be concerning, the best thing to do is to be up front with the property to determine if it’s a deal breaker or inconsequential. While some property management companies have stringen t guidelines they must follow others are more flexible and willing to look at the situation, your employment history, personal savings, and other indicators of your ability to pay rent on time. You might also find that small complexes or owner-occupied units may be more willing and able to bend their own rules and give you the benefit of a doubt.

Rethink Your Strategy – if you have a poor financial profile know that it could take longer to find an apartment and you may need to pay month to month or offer a bigger deposit. If you cannot find a place that will accept your application or negotiate terms with you then it’s time to consider other options. Moving in with family or friends or into a roommate situation will give you time to build your credit history and income and put you in a position to move out on your own in the future.

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